Bill C-218 will now enter into the last phase of hearings with the Standing Committee on Justice and Human Rights before moving to the senate and then to Governor-General for Royal Assent.
During the reading, several parliamentarians expressed their support for the bill based on the positive impact it would have for their communities.
Kevin Waugh, who sponsored the Bill, said that: “By passing Bill C-218, we can ensure that going forward, profits from sports wagering are put back into our communities, into health care, education, problem gambling programs, youth sports and other important services rather than the pockets of offshore companies or even criminals.”
Several stakeholders including gaming companies in Canada have since come out to voice their support for the Bill.
Quentin Martin, chief executive of esports betting operator Luckbox, said: “This overwhelming result shows there is cross-party support for an amendment to what is an outdated law and very welcome for organisations like ours which offer safe, responsible and enjoyable wagering on events.”
Stewart Groumoutis, the British Columbia Lottery Corporation’s director of eGaming, said: “We’re calling on all Members of Parliament to work together collaboratively to legalize single-event betting for the benefit of our players and provinces.”
And John Levy, chief executive of digital media company theScore, said: “Today’s development in the House of Commons, focusing on the legalization of single event sports betting in Canada, is a significant step forward in the process to amend an outdated law.”
The business formerly known as Net Gaming’s revenue was down as new depositing customers also declined, by 18%.
It also saw earnings before interest, tax, depreciation and amortisation (EBITDA) drop 34.3% to €5.4m while adjusted EBITDA, before non-comparable items such as acquisitions, was down 31.8% to €5.7m.
Acroud’s profit came to €1.3m, down 74.6%, while adjusted profit before items affecting comparability was €3.2m, down 28.3%.
The business will not pay a dividend for 2020, as it will focus instead on “prioritis[ing] growth initiatives”.
Chief executive Robert Andersson said the decline in revenue was mostly due to “regulative effects”, which reflect its goals of targeting more regulated markets.
This, he said, meant it was always going to take time to come to fruition in terms of revenue, but he noted that there were already positive signs from the end of the year.
In the fourth quarter, revenue declined 23.1% year-on-year but was up 5% quarter-on-quarter to €2.5m, while EBITDA was down 32.5% from 2019 to €1.3m. New depositing customers increased 3% year-on-year.
The business made a €685,000 loss for the quarter, compared to a €610,000 profit in Q4 of 2020. However, after accounting for items that affect comparability, it made a €94,000 profit, down 92.1% from 2019.
The quarter also saw Acroud acquire an unnamed sports betting business, which it said is well-positioned in emerging markets such as Latin America, Africa and Asia.
The case relates specifically to social game developer Zynga, and was lodged with the US District Court for the Northern District of Columbia.
The suit takes issue with free-to-play casino-style games that offer micro-transactions and in-app purchases.
The plaintiffs said that Zynga’s casino-style apps violate a number of state statutes related to gambling, and that Apple is culpable in the case by providing iOS development tools, hosting the titles on the App Store and profiting from their sale.
The case alleges that as sole administrator of the App Store, Apple “permits and facilitates illegal gambling by operating as an unlicensed casino”, by allowing users to buy in-game coins or chips for use in games such as blackjack, roulette, poker, keno, bingo and other gambling-style games.
According to the plaintiffs, despite the fact that users cannot collect actual cash from the games, the system of paying money for a chance to win more playing time violates anti-gambling laws in the 25 states cited in the case.
The plaintiffs are seeking an injunction, damages, restitution and legal fees from Apple.
The igaming solutions provider posted €161.9m (£140.4m/$195.3m) in revenue for the 12 months through to 31 December 2020, up 23.2% from €131.4m in the previous year.
Aspire Global said this increase was primarily due to the impact of Covid-19, as the temporary closure of land-based gambling facilities and postponement of sports led more people playing online casino games.
The provider also said growth was partially driven by growth in its recently rebranded Aspire Core B2B business, as well as the fact the 2020 figures included the full year results of Pariplay, which it acquired in Q4 of 2019.
In addition, Aspire Global noted improvements to its service offering, including more payment methods being made available to players, the ability to use more currencies and faster website function, following significant investments in IT infrastructure.
Breaking down Aspire Global’s performance, revenue from its B2B segment, not including inter-segment revenue, was up 36.7% year-on-year to €110.9m, which the provider put down to organic growth in the Aspire Core platform business and the Pariplay acquisition.
From the fourth quarter, this segment also included BtoBet, the sportsbook provider that Aspire Global acquired in September of last year.
In terms of B2C, revenue in this segment climbed 1.3% year-on-year to €51.0m, helped by significant marketing investments in regulated markets including the UK, Denmark and Ireland across the sport and casino verticals.
Looking more closely at geographical performance, Aspire Global saw growth in all markets, with the exception of the Nordics, where revenue declined 34.9% to €16.4m.
UK and Ireland revenue climbed by 87.7% to €35.1m, while rest of Europe revenue also increased 18.0% to €98.2. Rest of world revenue rocketed 183.7%, helped by the BtoBet acquisition.
“Over the past 12 months we have created a new Aspire Global and established the company as a powerhouse for igaming operators,” Aspire Global’s chief executive Tsachi Maimon said.
“I dare to be bold and say that Aspire Global has unique assets that give the company a strong position with huge growth potential.”
Operating costs in the year amounted to €129.8m, up 17.0% on 2019, but the increase in revenue meant that earnings before interest, tax, depreciation and amortisation (EBITDA) increased 24.9% to €27.1m.
Aspire Global accounted for €6.3m in depreciation and amortisation costs, which resulted in an operating profit of €20.8m, up 17.5% year-on-year. After including financial expenses and interest income, profit before tax totalled €16.4m, down 3.0% on 2019.
Aspire Global paid €1.4m in tax for 2020, leaving it with a total of €13.1m in comprehensive net profit, compared to just €405,000 in 2019 due to the Israeli tax payment. This was after accounting for losses from its share in associated companies.
The provider also published its results for the fourth quarter of 2020, during which revenue was up 37.6% to €44.4m. B2B revenue increased by 44.7% to €33.1m, while B2C revenue climbed 29.0% to a record €14.3m.
Operating costs in Q4 totalled €34.8m and EBITDA increased 88.6% to €8.2m, while operating profit more than doubled to €6.3m.
Profit before tax jumped 88.5% year-on-year to €4.9m and Aspire Global paid €720,000 in tax in the quarter, resulting in comprehensive net profit of €3.1m, compared to a €12.1m loss in 2019 due to the Israeli tax case.
“Prior to the acquisitions of BtoBet and Pariplay, Aspire Global was a European focused company with revenues mainly from casino,” Maimon said.
“Today Aspire Global is present in four continents and we provide a complete, leading igaming offering with proprietary games and games aggregation along with a sportsbook, gaming platform and managed services.
“This is key to our partners when they develop their expansion plans and provides us with competitive advantages.”
Launched in November as part of its rebrand from GVC Holdings to Entain, ARC was developed to deploy the group’s proprietary technology platform and behavioural play data to provide end-to-end player protection and interaction across its network.
The initial phase of this saw Entain expand its behavioural indicators to include new factor such as fluctuations in stake levels, erratic play during a single session and signs that a player might be chasing losses.
Data scientists at Entain have also started to develop models to test the extended range of indicators in real situations, with the aim of identifying customers who may show signs of potential problems, as well as those exhibiting intermittent signs of being at potential risk.
Entain said its end goal is to offer all of its customers both a personalised playing experience and protection tailored to their individual risk profile.
Peter Marcus, group operations director at Entain, who is overseeing the development of ARC, said: “We’re using our technology, leveraging our data and behavioural science, to deliver a fundamental shift in customer care.
“The real innovation is to apply hyper-personalisation to customer protection – using insight into the individual behaviours of customers to manage their exposure to risk in real time.”
Data from the new models is to be assessed prior to further development of ARC in the coming months, with Entain to continue to work with the Harvard Medical School Faculty, Division on Addiction, as part of its ongoing multi-year research project.
Entain plans to launch ARC first in the UK this summer.
Entain chief executive Jette Nygaard-Andersen said: “We are putting customers first, both by prioritising their safety through our use of technology to limit individual exposure to risk, whilst also enhancing their experience across all our brands.
“We will do this not only in our traditional markets of sports betting and gaming, but also as we grow into new areas, like video gaming and esports as a global entertainment company.”
The initial phase of ARC activity has also seen Entain partner with independent game data specialist Future Anthem, and neuroscience, neuroimaging and problem gambling expert Mindway AI to develop two new pilot initiatives.
Working with Future Anthem, Entain in November announced plans to pilot the Anthemetrics Safer Play Responsible Gambling solution, to help strengthen its existing detection technology and allow for earlier identification of players who exhibit potential early signs of problem gambling.
Entain also said it would make use of Mindway AI’s Gamalyze self-identification test, to provide users with feedback about their decision-making, as well as offer advice and guidance on how to keep control of their gambling.
Online slots made up most of the state’s igaming revenue at $51.0m, more than seven times January 2020’s revenue. Online table game revenue was up 380.0% to $26.7m and online poker revenue was up 28.6% to $2.7m.
Among online operators, Penn National Gaming’s Hollywood Casino – which has online skins including DraftKings as well as its own brand – led the way in revenue with $27.6m. Rivers Casino Philadelphia – with skins including Rush Street Interactive – brought in $21.0m, while Valley Forge Casino, which has a FanDuel-branded online product, brought in $14.7m.
As we look to the year ahead, industry experts share their thoughts on the opportunities and challenges facing the industry.
In part four we talk to marketing experts. In part one we heard from igaming operators and suppliers, in part two we covered land-based operators and suppliers and in part three we covered finance. In parts five to eight we will focus on people, technology and innovation, regulation and social responsibility.
Interviewees
Michael Daly, vice president North America, Catena Media Clive Hawkswood, industry consultant and former CEO, Remote Gambling Association Anika Howard, vice president brand marketing and digital, Foxwoods Resort Casino Harry Lang, marketing director, Buzz Bingo
Looking back at 2020, what – other than the Covid-19 pandemic – did you feel was transformational for the industry? And how much of a lasting effect do you think the Covid-19 pandemic will have going forward?
Michael daly
Michael Daly: The transformational element in 2020, at least in the US gambling space, was the recognition by the old guard of the importance and value of the online portion of the gambling business. Since it came into existence in New Jersey eight or so years ago, despite outperforming in many states and sectors, it has always been treated as the red-headed stepchild of the land-based industry. 2020 has been the year these online businesses stood apart – sometimes alone due to pandemic restrictions – from that traditional segment and have shown they can bring great value. And that it is a stronger entity which has both online and land-based, not a weaker one. I think that recognition will be a lasting effect and will change how companies think about their gambling business going forward.
Clive Hawkswood: I don’t think there was anything truly transformational. Understandably, most issues have taken a back seat to Covid-19. Although it’s way too early to have any certainty about what the long-term effects will be, it could accelerate the move from land-based to online gambling, especially if it leads to a reduction in the number of land-based venues.
Anika Howard: 2020 validated the statement “necessity is the mother of invention”. The Covid-19 pandemic forced a global revaluation of the way we live, think, socialise and work. Adversity gave way to creativity and innovation as we adapted and found new ways to connect. Even with vaccines becoming widely available, it will take time for the gaming industry to bounce back to what it was pre-Covid-19. Many changes will have a lasting impact and are here to stay. For one, the remote work culture is here to stay – this is a major shift in gaming.
Agency partners and back of house functions created new and more streamlined ways to function when faced with challenges. Another key change is that online consumption doubled in 2020 as consumers absorbed a record amount of digital content from social media and streaming platforms. Digital, igaming and interactive will remain in the forefront, making content marketing and finding inventive ways to connect with guests even more critical.
Harry Lang: First of all, it’s pretty hard to discount a global pandemic from any assessment of 2020. That said, the rapid progression of the US market was exciting and a little unnerving in equal measure. You would have thought that the states’ regulators would have looked at 15 years of lessons in regulated European markets post UIGEA and learned some lessons about responsible gaming, marketing legislation and player protection, but some of the noise I’ve heard trickling back over the Atlantic still suggests it’s a big old bun fight, so I hope the larger operators step in to regulate themselves and the market before more draconian laws are required.
Post Covid-19 everywhere else, there seems to have been a significant “keep calm and carry on” mentality across the industry, but it’s been hugely disruptive, with significant job losses and furlough schemes affecting a huge number of people. I hope that everything can get back to normal as soon as possible.
What do you feel is going to be a game-changer for the industry in the coming year?
MD: Marketing and the digital space is about customisation for the individual, as shown in other sectors. AI will likely be what we see employed to this end. So it is really evolutionary vs revolutionary since we will be copying what other industries have led on, but, outside of journalism, plagiarism is a form of flattery.
Clive Hawkswood
CH: Unoriginally, I’d have to say the UK government’s review of the gambling laws and, notably, whatever proposals arise in a white paper or something like it later in the year following the call for evidence. If there is sufficient pressure as a result of the ensuing public debate, then the ASA and the Gambling Commission could well introduce additional restrictions in advance of any change to the gambling laws. Likewise, the Betting and Gaming Council (BGC), which in reality holds the pen on the Industry Code for Socially Responsible Advertising, could unilaterally introduce fresh restrictions. On recent experience, that could manifest itself in areas like sponsorship, broadcast advertising and social media.
The BGC describes itself as a standards raising body and given the prominence of advertising in the wider debate about gambling and its accessibility, it would not be unreasonable for it to consider fresh measures. The truth is that there is now such momentum behind the reformers, both inside and outside of Parliament, that something has to give. It is not a question of whether, it is a question of what, but it will take substantial changes to satisfy them. Although it’s too early to say what the game-changers will be as a result of this, it seems inevitable that there will be some and everyone in the marketing sector should stand ready to fight their corner.
AH: 2020 was a record year for igaming and sports betting revenue and this will continue. All signs point to 2021 being the year online sports betting and mobile gaming really take off. The convenience of gaming and gambling from a mobile device will continue to grow in popularity as legislation continues to be passed and state governments continue to see revenues increase as a result of online sports betting and mobile gaming. US sports betting has the opportunity to expand to the larger predictions markets that are popular in other countries. We saw the potential when sports were cancelled due to Covid-19. From betting on esports to betting on award shows, reality TV and elections, our imagination can lead to some very interesting experiences for bettors.
We will also see market consolidation as land-based operators look to capitalise on this trend and acquire suppliers to bring the full ecosystem in-house. It’s imperative for gaming marketers to keep a pulse on how developments in this sector will affect the gaming industry as a whole. It will create very unique marketing and partnership opportunities as this becomes a more integrated part of the overall gaming experience.
HL: For us at Buzz Bingo the opportunity in omnichannel is not only appealing for the all-encompassing entertainment experience it can offer our players, but also because so few operators have the retail estate to be able to compete. I think the lines between land-based and digital will become increasingly blurred and in that new amalgamated space all sorts of innovations are going to blossom. It’s hugely exciting.
On the other hand, what do you feel could disrupt the sector or slow progress?
MD: The fallout of Covid-19 on the global economic scale could be good for progress of new markets and states developing, but could also lead to more restrictive marketing regulations as politicians during tough economic times try to “protect” their constituents from the businesses they want to allow for “others” to spend in. We see this in some countries where only the tourists can gamble but not the locals. These kind of restrictive laws/regulations always do more harm than good in creating a healthy industry.
CH: There will be fundamental challenges to industry staples like television advertising. That can safely be taken as read and at a headline level it could threaten all types of gambling advertising before the 9pm watershed. In that event it would hit bingo and betting, with the former feeling the biggest impact. Children and gambling, and children and gambling marketing will be front and centre in many of the debates. A lot of mud will be thrown around and some of it will stick. More generally, nothing will be off the table and so in principle everything could be at risk. Every existing marketing model will come under scrutiny.
One example that springs to mind is the affiliate revenue share model. It has already been raised in the House of Lords and depicted as something that incentivises affiliates to benefit indefinitely from the losses of gambling “addicts”. It’s a distorted view of an arrangement that has long been part of the backbone of relationships between operators and affiliates, but views and opinions rather than hard evidence frequently determine how parliamentarians vote.
AH: Entertainment and larger promotions and events will be slower to return to pre-Covid levels. Virtual events will need to evolve and become more engaging and interactive. Instead of one-way communication vehicles, more companies will experiment with formats that blend live interactions, augmented reality and digital content.
Harry Lang
HL: The restrictions on VIP programmes and the need to see proof of funds is a massive change and one that makes engaging with higher value customers much more difficult. That said, I’ve always maintained that if there is a level playing field, this industry is home to some very innovative marketers so as new legislation comes in, we simply move with the times. It seems likely that strong brands, excellent products, rich content and creative marketing communications will be the differentiators that set the winners apart from the losers moving forward.
With industry marketing increasingly under the spotlight, what channels do you consider the most sustainable and stable?
MD: As an affiliate, I have to say organic search traffic is the most sustainable and stable. Other forms of marketing, from pay-per-click (PPC) advertising to pop-ups, etc., are all unstable in my view. PPC rates vary widely and search engines will mix things up in order to drive us to use those tools. At the same time, all of those may be limited by search engine privacy tools. Organic search is based on “the will of the people” and their interest in learning about gambling content and operators. That is not going anywhere.
CH: We can be sure that broadcast advertising and social media marketing will be the two areas under most scrutiny so, by a process of elimination, the safest channels will be what might be described as traditional online and print media.
Anika howard
AH: Social and digital media, both paid and organic, are the most effective and sustainable outlets for relationship building with our potential and existing guests. We’ve embraced these channels. We challenge ourselves to meet the needs and desires of our audience, when, where, and how they want to be reached, with the ultimate goal of creating a lasting impression and authentic line of communication. Social and digital analytics and listening tools are the best way to understand customer and brand sentiment, market trends and future opportunities.
HL: If you want to build brands, TV remains hard to beat. If you want to drive acquisition with low CPAs, SEO and ASO are still the benchmarks. Neither is easy to get right, but both are worth the time and cash investment in the long term.
Brands to be blocked from Australia include Syndicate Casino, Fast Pay Casino, BitStarz and King Billy Casino.
The ACMA said it had received numerous complaints about the 18 websites, and following investigation found them to be operating in breach of the Interactive Gambling Act 2001.
Website blocking is one of a range of enforcement options the ACMA uses to combat unlicensed gambling in the jurisdiction.
In addition, the ACMA said over 100 unlicensed operators have pulled out of the Australian market since the authority started enforcing new offshore gambling rules in 2017.
In November, the ACMA reminded all the licensed operators in Australia to comply with gambling advertising rules after highlighting inconsistencies in industry interpretations of the controls.
The authority has monitored the effectiveness of advertising rules since 2018 when they were brought in. Although it had not identified any major concerns, it did uncover inconsistencies in the ways gambling companies interpreted the rules.
Figures published by the New Jersey Division of Gaming Enforcement (NJDGE) show that total gaming revenue for the month stood at $346.4m (£249.0m/€287.1m), which was 15.3% more than January last year and also 10.7% higher than December 2020.
Sports betting revenue reached a record high of $82.6m, which was 54.3% up from $53.6m in January of last year, and also 24.4% higher than the previous record of $66.4m set in December 2020.
Players wagered $948.7m on sports in January, down from the record $996.3m spent in December last year, with $886.7m bet online and $72.1m in person at retail sportsbooks.
FanDuel and PointsBet at Meadowlands retained top spot in the state’s sports betting market, posting $46.8m in revenue for the month, up 76.6% year-on-year.
Amounts wagered at the operator’s brick-and-mortar book at the city’s Capital One Arena, and via a mobile offering available in a two-block radius around the venue, fell 14.9% to $10.6m in January.
Players won $8.7m during the month, leaving gross revenue of $1.9m. While this represented a rise in average hold percentage to 17.9%, the monthly total was down marginally compared to December.
January’s figures take the total handle wagered via William Hill in DC’s fiscal year, which runs to 30 June, to $51.0m, and its total gross revenue to $9.2m.
This means it continued to outperform the DC Lottery’s Intralot-powered Gambet mobile app, which is available citywide.
